manufacturing

No Satisfaction at Toyota

No Satisfaction at Toyota Paint Shop FastCompany.jpg

Great article by FastCompany, key points:

It restructures a little bit every work shift.

  • 10 hours in painting. Robots did much of the work, then as now, but they were supplied with paint through long hoses from storage tanks. “If we were painting a car red, before we could paint the next car white, we had to stop, flush the red paint out of the lines and the applicator tip, and reload the next color,” Georgetown literally threw away 30% of the pricey car paint it bought, cleaning it out of equipment and supply hoses when switching colors.

Cars now spend 8 hours in paint, instead of 10. The paint shop at any moment holds 25% fewer cars than it used to. Wasted paint? Practically zero. What used to require 100 gallons now takes 70.

  • Not only does Georgetown use less paint, it also buys less cleaning solvent and has dramatically reduced disposal costs for both. Together with new programming to make the robots paint more quickly, has increased the efficiency of its car-wash-sized paint booths from 33 cars an hour to 50.

  • “We’re getting the same volume with two booths that we used to get with three, so we shut down one of the booths.” If you want to trim your energy bill, try unplugging an oven big enough to bake 25 cars. Workers dismantled Top Coat Booth C, leaving the open floor space available for some future task.

  • shutting down Top Coat Booth C liberated a handful of maintenance engineers–who turned their attention to accelerating the next round of changes. Success, in that way, becomes the platform for further improvement. By the end of this year, Buckner and his team hope to have cut almost in half the amount of floor space the paint shop needs–all while continuing to paint 2,000 cars a day.

 

  • tenaciously competitive quality

  • Lean / continuous improvement have been around for more than a quarter-century.

  • You outflank them next decade. They just don’t realize it.

 

  • Toyota wasn’t just another workplace but a different way of thinking about work.

  • Contrasted to the American business culture of not admitting, or even discussing, problems in settings like meetings.

  • please talk to us about your problems so we can all work on them together.'”

  • improvement is much more realistic, much more human

  • improving something starts after understanding the standardunderstanding how we do it now. If you don’t understand what you’re trying to improve, how do you know that your suggestion is an improvement?”

  • How come the checkout lines at Wal-Mart never get shorter?

  • How come the customer service of your cell-phone company never improves, year after year? How come my PC gets harder to operate with each software upgrade?

  • doing it in every single department, every single day. They’re doing it on their own

  • You simply can’t lose interest in it, shrug, and give up – any more than you can lose interest in your own future.

  • Doing the task and doing the task better become one and the same thing

https://www.fastcompany.com/58345/no-satisfaction-toyota

the Lego Turnaround

Lego-bricks.jpg

For those who enjoy turnarounds as much as I do,

How Lego Went From Nearly Bankrupt to the Most Powerful Brand in the World

https://www.successagency.com/growth/2018/02/27/lego-bankrupt-powerful-brand

How Lego Became The Apple Of Toys

01-08-15

After a decade-long slump, Lego has rebuilt itself into a global juggernaut. An exclusive look inside the company’s top-secret Future Lab.

https://www.fastcompany.com/3040223/when-it-clicks-it-clicks

Lego banner.jpg

Results:

Lego is so popular, it can’t keep up with demand

The company has worked to reduce sales

By Andrew Liptak

Sep 7, 2016

https://www.theverge.com/2016/9/7/12829974/lego-sales-2016-growth-demand-factory-strain

Lego Sales DKK Billions.jpg

“chart of the LEGO’s complete sales history from its founding in 1932 through its most recent year. LEGO faced bankruptcy in 2003, made some major internal changes, and in 2007 began a period of eight years of 21% annual sales growth and 36% annual profit growth. The streak slowed down in 2016”

https://theleadershipnetwork.com/article/lessons-from-lego-what-do-you-do-when-your-current-growth-phase-ends

Lego Sales 2003-2017 Billions.jpg

Rebuilding Lego, Brick by Brick

How a supply chain transformation helped put the beloved toymaker back together again.

Aug 29, 2007 

Issue 48 (originally published by Booz & Company)

these are my notes/key points, link below to full article, worth reading; also touches on how standardization drives creativity.

“The Lego Group had lost money four out of the seven years from 1998 through 2004. Sales dropped 30% in 2003 and 10% more in 2004, when profit margins stood at –30%. Lego Group executives estimated that the company was destroying €250,000 ($337,000) in value every day.

The Lego Group’s supply chain was at least 10 years out of date.  Poor customer service and spotty availability of products were eroding the com­pany’s franchise in key markets.

it took many years of underperformance before the company realized that the supply chain was a major source of its difficulties.

What made those problems especially hard to identify was that they grew out of the company’s core strengths: its capacity for innovation and its commitment to quality. Those were the very advantages that the company’s leaders had relied on.

Three-quarters of the Lego Group’s sales every year were from new, mostly nonelectronic products. “I believe that the focus on electronic competition was really a blame game,”

the “Kitchen,” the company’s product development lab

disregard for the costs of innovation. The company designers were dreaming up new toys without factoring in the price of materials or the costs of production. That kind of carefree creativity is unsustainable
where cost pressures are a constant concern.

did not align its supply chain with that business strategy.

teams placed their orders haphazardly and changed them frequently, preventing operations from piecing together a reliable picture of demand needs, supply capabilities, and inventory levels. This murkiness led to overall capacity utilization of just 70%.

such a fragmented system
Day-to-day operations were often chaotic. Operators routinely responded to last-minute demands, readily implementing costly changeovers.

rationalizing the cost of the company’s materials would be one of the easier parts of the transformation and would yield savings immediately.

Constraints don’t destroy creativity or product excellence, and they can even enhance them.

the perceived mandate had evolved into a crutch. “This idea had become an emotional concept and an excuse to oppose new cost-saving initiatives,” he says. “Anytime there was something someone didn’t want to do, they would say, ‘You cannot do that because of quality.’”

the Lego Group cut its resin costs in half and shrink its supplier roster by 80%.

the operational team put a process in place to help designers make more cost-effective choices. 

Cost transparency gave developers a new way to define their achievement. “The best cooks are not the ones who have all the ingredients in front of them. They’re the ones who go into whatever kitchen and work with whatever they have,”

a new set of constraints could in fact enable them to become even more creative.”

also needed to move its distribution channels closer to the customer — and to lower its bloated distribution costs.

First, the number of its logistics providers was cut from 26 to three or four — enough to ensure resilience and gain greater economies of scale while still encouraging competition among the suppliers. This step alone saved more than 10% in transportation costs.

leapfrog the competition by redesigning its entire distribution system.

Although many companies have taken manufacturing to lower-cost markets and to contract providers, surprisingly few have done the same with distribution, although identical advantages exist. The Lego Group phased out five centers in Denmark, Germany, and France and created a single new center in the Czech Republic

- saved approximately €50 million ($67 million) since 2004, and forecasts savings in excess of €100 million ($135 million) over the next two years.
The tremendous gains in efficiency meant that despite the impact of rising oil prices on materials and transportation, stock turnover increased by 12 percent in 2005, and the same year, the Lego Group recorded its first profits — €61 million ($72 million) — since 2002. This positive trend further continued in 2006, with the Lego Group turnover up by 11 percent over 2005, and profits up by a staggering 240%

Addressing operations (streamlined product development, sourcing, manufacturing, and distribution) has allowed us to again focus on developing the business, on innovation, and on developing our organization to become a much more creative place to work”

https://www.strategy-business.com/article/07306?gko=813c3

The LEGO Group spells its trademarked brand name and its company name in uppercase letters.

(If you want to know the Lego co.’s origins: https://www.history.com/news/the-disastrous-backstory-behind-the-invention-of-lego-bricks)

Mar/Apr 2009 Canadian Manufacturers & Exporter Magazine

Mar/Apr 2009
Canadian Manufacturers & Exporter Magazine

P 27
- expect infrastructure suppliers, health care providers, IT companies, energy firms and any company that is less dependent than average on the US consumer to fare better than most manufacturers

p 28
- www.threadless.com , Chicago. T-shirts created, submitted & rated by the public
- Local Motors, Massachusetts, www.local-motors.com custom cars

p 29
- book Changeable and Reconfigurable Manufacturing Systems, El-Maraghy, 2008
p 30
- Industrial Machine & Mfg. Inc. Saskatoon
p31
- McCoy Corporation, Edmonton

P51
- The other course is to conserve, to manufacture in Canada not only the preliminary processes, but also the succeeding processes and export the products in a finished state.

P 52
- Edson Packaging Machinery Ltd. Hamilton. in early Feb 2009, the company received a record # of orders from abroad

We’ve heard from the media about the economic devastation; now we need the media to report on the manufacturing companies that are prospering and moving on